Cantaloupe Inc. (CTLP) in Laughing Water Capital 2024 Q2

Revisiting Growth Potential in Self-Serve Retail Solutions

Apr 15, 2025

Summary

Investment rationale: Re-entry into the portfolio due to fundamental improvements and market positioning.
Market positioning: Provides hardware, payments, and software solutions to self-serve retail sectors.
Risks and challenges: Market has not yet rewarded the company for its improvements.
Recent performance: Management laid out a plan for 15% CAGR in revenue and 70% CAGR in EBITDA.
Future outlook: Potential for significant upside as the company targets $75M in EBITDA by fiscal 2026.

In Laughing Water Capital’s Q2 2024 letter, Cantaloupe Inc. (CTLP, Financial) was highlighted as a new addition to the portfolio, marking its second entry after previous ownership in 2020 and 2021. The fund manager emphasized the company's ongoing fundamental improvements under a new management team, which have yet to be fully recognized by the market.

"Cantaloupe, perhaps best known in the vending machine world, provides hardware, payments and software solutions to self-serve retail including micro-markets, laundry, arcade, auto air/vacuum, and others. Self-serve retail is reasonably recession resistant, and Cantaloupe’s products help customers increase revenue and cut costs. Payments and software revenue are recurring in nature, and historic churn has been close to zero." — Laughing Water Capital, Q2 2024 Fund Letter

Read full letter at gurufocus Laughing Water Capital 2024 Q2 page.

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